Crypto is blowing up. No longer a niche tech field, now everyone is getting in on the action and trying out the world of crypto trading. It’s easy to both win money – if you know what you’re doing, as well as lose money – if you don’t!
If you’re keen to make it in the crypto market, we’ve rounded up some of the best ways to help you get there – if you do your research.
1. Day trading with lesser-known crypto apps
Trading has come to the forefront with Gen Z. People with a little time on their hands and a little money have realized that they’re able to get involved in the exciting world of day trading. While traditional markets are more predictable and trickier to ‘play’ on, crypto is currently fairly volatile, making it a place where there is a higher risk – but also with the chance of higher reward.
Some of the bigger names in the crypto market exchange game, such as Coinbase and Kraken, have gone down (offline) during periods of high trading. This means that you may not be able to sell or buy when you want to. This can have the effect of costing you thousands of dollars, depending on your strategy. By choosing a lesser-known app for crypto trading, you can hope to avoid any scalability issues that plague the larger providers when under high-stress traffic loads.
2. Mining new coins
Purchasing a mining rig for mining Bitcoin is going to be a loss-making exercise. The coin is now so popular and mature in the market that you won’t be able to make any Bitcoin as an individual player.
However, this isn’t the case for new and upcoming coins. Each coin has a different mining technique, so may require different hardware to mine, and some coins can be mined simultaneously, depending on your setup.
If you’re interested in becoming a miner so that you can win new coins, then it pays to do your research before splashing out on equipment. This research should be dedicated to what is trending for mining equipment for new coins, based on their mining algorithm, as well as trying to determine what will be a popular coin in the future.
3. Delegating your coins in a stake pool
For those who don’t want to invest in hardware for mining, there are also delegate stake pools. This is the basis of Cardano, aka the ADA coin. This is when you have more than a specific amount of ADA, you can ‘stake’ it in another provider’s stake pool – who does the mining for you while taking a bit off the top.
This incentivizes people to both invest in the coin as well as build the community – while still growing your Cardano nest egg. There are other coins with similar structures so check out what’s on offer.
4. Running an in-person exchange with your friends and family
One of the annoying things about crypto trading for the regular person on the street is the large fees that exchanges take for conversion from your Mastercard/Visa/bank deposit/etc. This can be a barrier to entry for many of your friends and family who’d otherwise like to get in and get some crypto.
Instead, when you’re out and about with family and friends, you can offer to transfer them crypto in exchange for their cash, or splitting the dinner check, etc. If you don’t like using banks, this is a particularly attractive option. You can still take a little bit off the top – just make sure it’s less than the rate an exchange would charge.
5. Go in as an early-stage investor in a cryptocurrency
This one is one that will require a larger amount of capital, to begin with, as well as a great deal of research. Early-stage investment, pre-ICO, is a way that you can get in early with a cryptocurrency and potentially make a huge amount of money.
This also generally requires deep networking within the crypto community. You need to be on the ball, know when people are trying to launch new crypto, as well as understand their business model – and judge whether it’s going to be successful. You can start by following influencers in the space on Twitter, sparking conversations on Reddit, and going to conferences and other networking events.
6. A crypto-accepting business
Already have a business or a business idea? Whether it’s cafes, a new successful bar, online marketing, or crypto casinos, why not set it up to accept crypto payments? It’s fairly easy to allow customers to pay you in established cryptocurrencies. All you need is an address set up, and people can send through coins using your QR code or via the address field.
The more crypto transactions you have going through your systems, the more you will be able to accumulate in your vault – for our next item on the list…
HODL is shorthand for hold on for dear life! What this means in the crypto world is to sit on your crypto assets and wait. It’s a long-term strategy and what works best for established coins such as Bitcoin and Ethereum.
While you can make a little bit in the short term you have the potential to make a lot more in the long term. Any money that you put into these longer-term investments needs to be something that you don’t touch.